Mary Hanafin (Dún Laoghaire, Fianna Fail)

Since the Green Paper on pensions was published in October 2007, the economic landscape has changed significantly in Ireland and the rest of the world. This has resulted in significant difficulties for pension scheme members, trustees and employers, related to the collapse in equity values and significant losses in pension funds.

Given these changed circumstances, the Government has moved to assist defined benefit schemes and their members through measures announced in December 2008 and more recent announcements. These include the establishment of a pensions insolvency payment fund, a reordering of wind-up priorities, provision for restructuring of pension benefits and stronger regulation with regard to remittance of pension contributions. These measures have been introduced to assist workers who are facing real and immediate difficulties with their defined benefit entitlements.

The Government is fully aware that the challenges facing our pension system go beyond these immediate difficulties. Members of defined contribution schemes have also faced losses in the value of their funds. In addition to these immediate pressures we are also faced with challenges relating to pensions coverage, the sustainability of our pensions system, the adequacy of current provision and the issues raised in the Green Paper in relation to social welfare pensions.

It is the intention of the Government to deal with all of these issues. It is important that the decisions we make are the correct ones, given that these decisions will have a significant impact on this generation and the next. Our objective must be a pension system which will deliver an adequate retirement income for all which is, at the same time, affordable and sustainable for the State and those who sponsor and provide occupational pension schemes. It is also important that an appropriate balance is struck between all stakeholders.

This Government has responded to the immediate pressures facing pension scheme members in a way we deem to be fair and equitable. We will continue to discuss further long-term reform options for inclusion in the final framework and I expect that this will be published in the near future.

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